Everybody ready to jump back in?
MIAMI, Jan 14 (Reuters) - Caribbean Cigar Co on Wednesday
denied a published report that forecast the company's imminent
demise.
"We are open for business today and we intend to stay open
for business," said President Kevin Doyle.
The premium cigar supplier said it is seeking new debt or
equity financing, has decided to sell the six stores in its
retail unit as soon as possible, and has engaged a financial
advisor to assist it in that process.
A company spokesman said an industry newsletter had
predicted the "imminent collapse" of Caribbean Cigar. He
declined to name the publication.
"We believe our future lies in focusing on leaf processing,
cigar production and worldwide distribution," Doyle said.
The company said it is continuing its previously announced
efforts to reduce overhead at its Miami headquarters and at its
production facility in the Dominican Republic.
"There's plenty of good news about the company," Doyle said.
He pointed in particular to a recent new deal with a "major
national mass market retailer" to deliver about 300,000 cigars
per month for the next three months.
The company said in the statement that demand for
Caribbean's flavored cigars -- Rum Runner, Island Amaretto and
West Indies Vanilla -- were at an all-time high and that steps
were being taken to boost production of these products.
In addition, the cigar maker said it will embark on an
aggressive international marketing and sales plan on March 1.
The company said it plans to seek an infusion of debt or
equity capital as promptly as possible, and is evaluating
various alternatives that have been presented to it.
"I am hopeful that we will be able to announce a new
financing soon," Doyle said.
The company cautioned, however, that it had no commitments
for new financing, and there could be no assurance that it
would be able to obtain financing on acceptable terms.
Doyle emphatically denied press reports that the company is
for sale.
Responding to questions about the pending securities
litigation in which the company is a defendant, Doyle said, "As
you know, the company restated its earnings for the fiscal
quarter ended June 30, 1997, in November."
He said the company's policy on responding to securities
lawsuits is to do so solely through its legal counsel. "We will
have more to say when we file an answer to these claims," he
added.
The company was trading at 1, up 1/16 on the day, slightly
above its year low of 13/16. The stock's 52-week high is
12-3/4.
REUTERS
Rtr 12:31 01-14-98 |
